Asset managers have reacted vocally to the planned withdrawal of the US from the Paris agreement on climate change, but argue that the project is still on course.
Steve Waygood, chief responsible investment officer at Aviva Investors, said President Donald Trump’s decision to withdraw the US from the Paris agreement “does not equate to the unravelling of the hard-won accord”.
“Markets can move ahead with clarity on the US position. The European Union and China have also indicated that they are ready to step up and provide leadership that will hopefully fill any vacuum,” said Waygood.
Trump’s decision implies financial and economic loss for the international community, as well as the US, said Waygood. He also said previous investment in new technology was paying off, which endorsed the financial significance of the transition to a carbon neutral economy.
“Developing countries are realising that renewable energy makes economic sense. Developed countries will not be far behind.”
Similarly, Simon Howard, CEO of the UK Sustainable Investment and Finance Association, said Trump’s move was “foolishness” but that the withdrawal would slow progress and not stop it.
“President Trump’s actions may slow global progress for a while, but it will give the issue an even higher profile and may end up accelerating change,” he said.
Matt Christensen, global head of responsible investment at Axa Investment Managers, said the decision was a “final blow” to Barak Obama’s climate legacy and that it was concerning because the US is a major greenhouse gas emissions contributor.
But he added: “In the mid-term, we believe this decision is more symbolic than material. We also think that most of the negative impact from this decision will be on the US itself and not so much on global climate action, which should keep its momentum regardless. The US may be surprised to find trade negotiations more difficult as an outcome of this action.”
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